In a medium size bowl, using a wire whisk, combine flour, baking powder, salt and cayenne pepper until well mixed. Form a well in the centre and crack egg open into the well. Pour 50ml of the milk into the well in the flour mixture; stir until it is smooth. Add just enough of the remaining milk until the mixture is soft enough to drop from a spoon. Stir in the grated cheese until the batter is well mixed. In a large saucepan or deep fryer, heat 5cm oil to 190*C. Drop tablespoons of the mixture, 6-8 at a time, into the hot oil and fry until golden brown on all sides, 1-2 minutes. Drain on paper towel, and serve immediately.